Life Cycle Perspective in relation to ISO 14001 : 2015 and associated impacts of Design For Environment (DFE) and

Master Thesis

HALMSTAD

UNIVERSITY

Master's Programme in Mechanical Engineering, 60 credits

Life Cycle Perspective in relation to ISO 14001 : 2015 and associated impacts of Design For Environment (DFE) and

Sustainable development

Thesis in Mechanical Engineering, 15 credits

Halmstad 2020-05-28

Vishnu VN,Suraj Satheesan

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PREFACE

This master thesis marks the culmination of our Master Program in Mechanical Engineering at Halmstad University. This report focuses on the international environmental management standard of ISO 14001: 2015 and other associated concepts such as Life Cycle Perspective, Design for Environment and Design for Sustainability. Working on this project has been a thoroughly engaging and enlightening affair and we hope this report could be of great use to anyone who would come across it by way of research. We are so pleased and proud to have been an integral part of this project and are also personally obliged and extremely grateful to all those who have helped and guided us in this endeavour.

First off, we owe a depth of gratitude to Dr. Aron Chibba, supervisor of this project for his constant encouragement, patient guidance and valuable supervision at every stage of our work.

We are also highly indebted to Halmstad University for providing us with the opportunity as well as all the necessary support and information that helped us in completing this project.

We would also like to express our gratitude towards our parents, family and friends for their kind cooperation and encouragement which helped us immensely in the completion of this

assignment.

_______________________ ________________________

Suraj Satheesan Vishnu VN +46764577199 +46764478569

Surajb122@yahoo.com vishnu122@yahoo.com

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ABSTRACT

ISO 14001:2015 is a certifiable environmental management standard applicable to any

enterprise, large or small, in all fields of manufacturing or trades and services. It is the updated version of the previous ISO 14001:2004 standard. The updated standard contains a new High Level Framework which is expected to be used in the future by all ISO management system standards. ISO 14001:2015 sets out to implement methodologies such as the environmental management system and prescribes certification criteria including environmental policy and goals, important environmental issues, pollution reduction and continuous improvement of environmental efficiency.

This report starts by looking into the documentation regarding life cycle perspective in the context of the ISO 14001:2015 standard. The revised model adopts a holistic approach across the value chain and encourages companies to accept a "life cycle perspective" with regard to the product and service design and development process. The methodology of life-cycle assessment (LCA) is also explored. The report goes on to examine another important aspect in

environmental management which is the concept of Design For Environment (DFE). More specifically it is examined whether adhering to DFE principles can also help companies to adapt to the ISO 14001:2015 requirements.

The concept of sustainable development in the context of ISO 14001 was given due precedence and it was found that ISO certified organizations will have an implicit awareness of sustainability because of the way ISO 14001 is structured. Corporate sustainability strategies were also

discussed and this shed more light into how companies can

Keywords: ISO 1400:2015, Environmental Management Systems, Life cycle perspective,

Design for Environment, Eco-design, Design for Sustainability

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TABLE OF CONTENTS

1. Introduction 1

1.1 The ISO 14000 family 1

1.2 Aim and goal of this study 2

1.3 Limitations 3

1.4 Individual responsibility and efforts 3

1.5 Study environment 3

2. Method 4

2.1 Alternative methods 5

2.2 Chosen methodology for this project 5

2.3 Literature study and database research 5

2.4 Evaluation method 6

2.5 Reliability and Validity 6

3. results 7

3.1 Literature review 7

3.1.1 Life Cycle Perspective 7

3.1.2 Aspects Clause 8

3.1.3 Life Cycle Definition 8

3.1.4 Operational Planning and Control Clause 8

3.1.5 Annex to the Standard: Environmental Aspects – Section A.6.1.2 8

3.1.6 ISO 14001:2015 Implementation Guidelines 9

3.1.7 Environmental Management Syetems 9

3.1.8 Aims of an environmental management system 10

3.1.9 Meeting life cycle requirements in ISO 14001 11

3.1.10 Life Cycle Assessment 12

3.1.11 Adoption of ISO 14001:2015 by organizations 14

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3.2 DFE as an approach to better cope with ISO requirements 15

3.3 Design for sustainability 19

3.3.1 Triple bottom line 19

4. Analysis and Conclusions 28

5. Discussion and implications 29

6. Critical review 29

6.1 Effect of chosen methodology 29

6.2 Environmental aspect 29

6.3 Ethical aspect 30

6.4 Health and Safety aspects 30

7. References

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1. Introduction

The International Organization for Standardization (ISO) is a worldwide federation of national standards institutes from more than 160 countries with its headquarters located in Geneva, Switzerland. It is the largest standards organization in the world and is an independent, non- governmental, international organization which forms a bridge between the public and private sectors. ISO standards are internationally agreed upon by experts and they cover a vast range of products, materials and processes. A company is ISO compliant when it follows these standards and typically, this is formalized with a certificate of compliance called ISO certification. ISO does not actually certify any group directly, but rather there are third party certification organizations that perform that task of auditing and then certifying an organization. ISO certification is proof that the organization complies with the standards and can show its key stakeholders that it has a well-run business that has structure, is stable and ready for growth. The standards in general aim to facilitate international trade and commerce.

ISO 14000 was initially released in 1996 and is a continuation of the standardization process that was initiated with the ISO 9000 series. ISO 14000 is the International standard for Environment Compliance and is a set of voluntary environmental management standards , guides and technical reports specifically focusing on corporate environmental responsibility, operating practices, products and services.

1.1 The ISO 14000 family

The ISO 14000 family of environmental management and auditing standards is a series of standards developed by ISO to help organizations reduce the impact of their operations on the environment. The ISO 14000 family contains more than 20 standards, guides, and other publications, dealing with a variety of topics such as Environmental Management Systems (EMS) and life-cycle assessment. It contains a set of guidelines for developing systems and practices related to environmental development and is divided into six sectors, each having one or more standards which are:

i. ISO 14001 and ISO 14004: Environmental Management Systems.

ii. ISO 14010 to ISO 14012: Environmental Auditing.

iii. ISO 14020 to ISO 14025: Environmental Labels and Declarations.

iv. ISO 14031: Environmental Performance Evaluation.

v. ISO 14040 to 14043: Life Cycle Assessment.

vi. ISO 14060: Environmental Aspects in Product Standards.

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ISO 14001 is the only standard out of the ISO 14000 series, which is certifiable and all the others essentially describe supporting functions which helps in maximizing the effectiveness of the environmental managgement system. The current version of ISO 14001 is ISO 14001:2015 and it was published in September 2015. A fundamental principle of ISO 14001 governing

environmental management systems is that organizations can set their own goals, based on whatever considerations they wish to include in their operations, such as the demands of customers, regulators, communities, lenders or environmental groups. The ISO 14001 standard only seeks to provide a framework within which to develop plans to meet those targets and to produce information if the targets are met. An important benefit of adopting ISO 14001 is to give stakeholders the reassurance they need that the organization's environmental claims are valid.

The ISO 14001 standard is intended to be flexible, and is considered to be of value in a wide variety of situations. One thing to note is that it is usually most readily accessible to large companies that already have a formal management system in place with the added advantage of expertise and resources to incorporate environmental issues into that system. However, the principles of this standard have been designed to apply to smaller businesses also, and to non- business organizations as well. In general, conformance with one of the international standards can help in the implementation of other standards. For example, once an organization has implemented ISO 14001, it is far easier for it to satisfy the requirements prescribed by EMAS (the European Eco-Management and Audit Scheme). As of 2018, more than 300,000 valid certifications have been issued worldwide (Charlet, 2018). Firms that adopt these standards are also more likely to comply with governmentally-imposed environmental regulations imposed by the government helping them to avoid potential regulatory fines. In addition, adoption of these standards also increases the reputation of a company and indicates to consumers that a firm is environmentally conscious, which subsequently improves brand image among the general public leading to a higher demand for their products.

1.2 Aim and goal of this study

The aim and goal of this study is to do a literature review, critical analysis and observation in order to evaluate “Life Cycle Perspective in relation to ISO 14001:2015 and the associated impacts of Design For Environment (DFE) and Sustainable development.” The study progresses by trying to answer the following research questions:

RQ 1: What is said and written about design and development in combination with life cycle perspective according to ISO 14001:2015?

RQ 2: Is DFE used as an approach to better cope with ISO 14001:2015 requirements? If not can DFE be used in other areas related to ISO 14001:2015, for example in life cycle assessment or developing sustainable supply chains?

RQ 3: Have ISO certified organizations acquired an awareness of the concept “Sustainable development”? How can these organizations show that they work with sustainable development?

Do they have a policy for sustainable development?

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1.3 Limitations

The main limitation of this study is the accumulation of only secondary data sources. In the scope of this study secondary research is more than enough to successfully investigate the research aims. However it cannot be denied that primary research would have yielded far more specific data and there would have been greater control over the information gained and also there would have been more of it. But as time and monetary resources were a constraint, we chose to go with secondary research and were able to conduct the study with the limited data available.

1.4 Individual responsibility and efforts

Both of the members in this team took on this study as a collaborative effort and we managed to delegate the tasks evenly between ourselves. We took turns researching and collecting the data and when the time came to put our findings on paper, we discussed between ourselves so as to provide the most rounded observations and diligently complete the study.

1.5 Study environment

The study was conducted in our respective home environments with occasional trips to the

library and such. There was also sessions of discussion and presentations of our findings to the

supervisor and progress reports were also done on a consistent basis.

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2. Method

The research method we have adhered to here is that of secondary research. This is an

exploratory study and information collected from the secondary analysis is later discussed in the literature review and appropriate conclusions are subsequently drawn.

Secondary research refers to the collection of data and information that has already been compiled, gathered, organized and published by others. Put simply, secondary data refers to material not obtained by the author or it is the analysis of data gathered by previous researchers (Martins, Cunha and Serra, 2018). Data of this kind may include reports and studies by

government agencies, trade associations or other businesses in different industries. When the budget is limited or there is less time available, most research is typically secondary because it can be obtained faster and more affordable than primary research. Secondary data analysis is an empirical exercise that follows the same basic concepts of study as primary data analysis, and consists of some logical steps to be followed just like any other research process. According to (P Johnston, 2014) secondary data analysis is a feasible approach to use when a structured procedure is being followed in the inquiry process. There are however certain factors that a researcher must take into account before deciding to move forward with secondary data analysis.

Exploration of sources

Problem identification, Objective, aims of study and scope of study

Data collection

Secondary Data

 Journal articles

 Reference books

 Magazines

 News sources Analyse theoretical information

Discussion and conclusion Evaluation

Figure 1: Secondary Research Method

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Because the researcher did not collect the data it is imperative for the researcher to become familiar with the data set. This process of familiarization entails:

 Learning about how the secondary data was collected

 Learning who the subjects of the study were

 Learning what the original objective of the original study was

 Determining what the response categories were

 Evaluating if weights need to be applied during the analysis of the data

 Deciding whether or not clusters or stratification need to be accounted for

Using secondary data allowed us to exploit many of its advantages which are:

 Large scope of data: You can rely on immensely large data sets that somebody else has

collected

 Professionally collected data: Secondary data has been collected by researchers with

years of experience

 Accessibility: Secondary data is usually easily accessible from online sources.

 Saves time: Secondary research takes much less time than primary research

 Inexpensive: Conducting secondary research is much cheaper than doing primary

research.

2.1 Alternative methods

The main alternative to our present research method would have been to use primary research.

But time was a limiting factor and there were also budget constraints to deal with and so we decided to use secondary research as there was already a wide amount of research material available on the internet. Moreover most of these articles and sources provided us with material that was also very specific to our research aims and questions.

2.2 Chosen methodology for this project

The methodology for this project involved going through three different stages which are:

i. Literature review: A comprehensive summary and theoretical analysis of previous research and scholarly articles in the fields of concern

ii. Observation: Physically observing the data and content for the purpose of understanding the ideas reflected in the research material

iii. Critical analysis: Breaking down the complex topics into parts, evaluating the content on an empirical basis and subjectively expressing opinions.

2.3 Literature study and database research

Both the members in this group scoured many academic portals and other relevant information

sources and shortlisted those that were relevant to the current research areas. The databases that

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we preferred to scrutinize were ResearchGate, Google Scholar, Science Direct, Emerald Insight, Springer Link, ProQuest, Scopus etc.We also examined the ISO 14001:2015 standards from the main ISO website and also looked at the websites of other international organizations that offered relevant insights such as United Nations Environment Programme, Institute of Environmental Management and Assessment etc.

2.4 Evaluation method

A systematic content analysis approach was used to shortlist relevant publications from

literature. An exhaustive appraisal of all the research materials in question yielded us with proper answers to the research questions and further critical examination provided us with the necessary insights to articulate our points within this report.

2.5 Reliability and Validity

In this study due importance was given to the reliability and validity of the academic works and

research materials. We undertook bibliometric studies to ensure that the journals and the authors

of the shortlisted articles were authentic and valid. We also used some internet sources and due

care has been taken to vet these sources as well by examining the veracity of the websites and its

respective authors.

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3. Results

This section starts with a thorough examination of the relevant literature after which conclusive results can be obtained through critical analysis.

3.1 Literature review

3.1.1 Life Cycle Perspective

According to ISO 14001, the reason for considering life cycle perspective is that ‘Some of the organization’s significant environmental impacts can occur during the transport, delivery, use, end-of-life treatment or final disposal of its product or service. By providing information, an organization can potentially prevent or mitigate adverse environmental impacts during these life cycle stages. The organization considers the extent of control or influence that it can exert over activities, products and services considering a life cycle perspective.” The term “life cycle” is first mentioned in the ISO 14001:2015 standard during the introduction while detailing the aims of an Environmental Management System. The ISO 14001:2015 standard prescribes a number of improvements with a significant one being the requirement that companies take a "life cycle"

perspective of the goods that they manufacture or produce. According to the standard, companies are incumbent upon themselves to monitor how their services or goods are produced,

manufactured, consumed, distributed, and disposed of and these actions should be executed in such a way as to not neglect or inadvertently transfer environmental impacts elsewhere in a product’s life cycle. They should be fully aware of all the potential environmental effects at every point of a product's life cycle, and should willingly undertake the responsibility of ensuring that the effects to the environment are as minimal as possible within each and every aspect of the life cycle. Also, the supplier should make allowances for all environmental considerations, including end-of-life, over the entire life cycle and can no longer presume that all environmental responsibility for that commodity from the time of sale transfers over to the consumer. Moreover a systematic approach to environmental management by using a life cycle perspective can provide higher management with information to build success over the long term and create options for contributing to sustainable development.

What is said about life cycle perspective according to ISO 14001:2015?

Examining all the relevant language in several areas of the standard and associated guidelines provides information on what is said about life cycle perspective in the standard (Zgavc, 2016).

The main areas and clauses which list this information are given below:

 Aspects Clause – ISO 14001:2015, Section 6.1.2

 Life Cycle Definition – ISO 14001:2015, Section 3.3.3

 Operational Planning and Control Clause – ISO 14001:2015, Section 8.1

 Annex to the ISO Standard: Environmental Aspects – ISO 14001:2015, Section A.6.1.2

 ISO 14004:2015 Implementation Guidelines

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3.1.2 Aspects Clause

The Aspect Clause contains a concise stipulation with regard to life cycle perspective and reads:

"within the defined scope of the EMS, the organization shall determine the environmental aspects of its activities, products, and services that it can control and those it can influence, and their associated impacts, considering a life cycle perspective". According to this clause, an organization should assess its ability to control or exert influence over environmental aspects that may be outside of its immediate influence.

3.1.3 Life Cycle Definition

This section provides a definition for product life cycle with the inclusion of both upstream and downstream activity. The definition of life cycle given is " Consecutive and interlinked stages of a product (or service) system, from raw material acquisition or generation from natural resources to final disposal. Life cycle stages include acquisition of raw materials, design, production, transportation/delivery, use, end-of-life treatment and final disposal".

3.1.4 Operational Planning and Control Clause

This clause provides information ranging from establishing controls in product development, determining EMS requirements in procurement practices, communicating EMS requirements to external providers, and sharing information regarding environmental impacts associated with downstream activity. Specifically it is said that, “Consistent with a life cycle perspective, the organization shall:

a) establish controls as appropriate to ensure that its environmental requirement(s) are addressed in the design and development process for the product or service, considering each stage of its life cycle;

b) determine its environmental requirement(s) for the procurement of products and services as appropriate;

c) communicate its relevant environmental requirement(s) to external providers, including contractors;

d) consider the need to provide information about potential significant environmental impacts associated with the transportation or delivery, use, end-of-life treatment and final disposal of its products and services.”

3.1.5 Annex to the Standard: Environmental Aspects – Section A.6.1.2

The Annex to the Standard clearly states that a detailed Life Cycle Assessment is not required in

order to conform to the ISO 14001:2015 standard. In spite of this, there is still clear emphasis on

examining upstream and downstream activity for a product or service, which is described as

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including all the stages such as raw material acquisition, design, production, transportation and delivery, use, end-of-life treatment, and final disposal. The Annex clarifies that assessing the ability to control or influence any of the life cycle stages is what is needed primarily. The standard remains flexible on how the stages are assessed and how the impacts associated with these upstream and downstream activities should be incorporated into the EMS.

3.1.6 ISO 14001:2015 Implementation Guidelines

The Implementation Guidelines provide additional points of clarification on how to blend a life cycle perspective into an existing environmental aspects evaluation. According to the guidelines, the organization should focus on what it can control or exert influence over in the spectrum of stages in a product or service. When applying a life cycle perspective to its products and services, the organization could benefit from considering the following factors:

• The stage in the life cycle of the product or service

• The degree of control it has over the life cycle stages

• The degree of influence it has over the life cycle

• The life of the product

• The organization’s influence on the supply chain

• The length of the supply chain

• The technological complexity of the product

The best strategy for an organization would be to consider those stages in the life cycle over which it has the greatest control or influence as these may prove to be the areas that offer the greatest opportunity for reducing resource use and minimizing pollution or waste.

3.1.7 Environmental Management Syetems

ISO 14001:2015 also specifies the requirements for an environmental management system that can be implemented by an organization in order to enhance its environmental performance. ISO 14001:2015 is intended for use by an organization seeking to manage its environmental

responsibilities in a systematic manner while also contributing to the environmental pillar of sustainability. According to ISO 14001:2015, consistent with the organization's environmental policy, the intended outcomes of an environmental management system mainly include:

 enhancement of environmental performance

 fulfillment of compliance obligations

 achievement of environmental objectives.

An ISO 14001 environmental management system (generally referred to as an EMS) is a

standardized framework designed to help companies control their environmental impacts and

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enhance the value of their goods, services and activities to the community. An environmental management system essentially includes a management framework which encompasses areas such as laying objectives, training, record keeping, inspecting and policies (ISO 14001:2015(en), 2015). An environmental management system's success depends primarily on the dedication and commitment from all levels and functions of the organization. An added caveat is that it is led by top management. Organizations can also further exploit opportunities to avoid or mitigate

adverse environmental impacts, and strengthen beneficial environmental impacts, particularly those that have strategic and competitive implications. Top management can effectively address its risks and opportunities by integrating environmental management into the corporate

processes, strategic direction and decision-making of the organization, aligning them with other business priorities and incorporating environmental governance into its overall management system. Demonstration of successful implementation of the ISO standard can be used to assure interested parties in the future that an effective environmental management system is in place.

However, adoption of this International Standard will not in itself assuredly provide optimal environmental outcomes. Application of this International Standard can differ from one organization to another due to the differing contexts and backgrounds of organizations. Two organizations can carry out similar activities but can have different compliance obligations, commitments in their environmental policy, environmental technologies and environmental performance goals and yet, both can conform to the requirements of this International Standard.

The level of detail and complexity of an EMS will vary depending upon the context of the organization, its scope, its compliance obligations, and the nature of its activities, products and services, including its environmental aspects and associated impacts.

3.1.8 Aims of an environmental management system

The main purpose behind this International Standard is to provide organizations with a structured framework to protect the environment and respond to changing environmental conditions that are in balance with socio-economic needs (ISO 14001:2015, 2015). It specifies requirements and protocols that enable an organization to achieve the intended outcomes it sets for its

environmental management system. Along with a systematic approach to environmental

management top management can be empowered with information to build success over the long term and create options for contributing to sustainable development by:

 protecting the environment by preventing or mitigating adverse impacts to it

 mitigating the potential adverse effect of environmental conditions on the organization

 assisting the organization in the fulfilling the associated compliance obligations

 facilitating greater environmental performance

 controlling or influencing the way the organization's products and services are designed,

manufactured, distributed, consumed and disposed by using a life cycle perspective that

can prevent adverse environmental impacts from being accidentally shifted elsewhere

within the life cycle

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 achieving financial and operational benefits that can result from implementing

environmentally sound alternatives that strengthen the organization’s market position

 communicating essential environmental information to other relevant interested parties.

This International Standard, like other International Standards does not intend to increase or change an organization’s legal requirements and merely details guidelines for enhanced

environmental performance. According to (Melnyk, Sroufe and Calantone, 2002), environmental management has shown real potential to improve an organization’s financial benefits beyond corporate social responsibility. Ecently, there has been an increased interest towards corporate activities aimed at reducing or eliminating the waste created during the various processes of production, use and disposal. Present research occupies this line of thought and seeks to identify the components in the processes that encourage or discourage such activities. With the

introduction of ISO 14001, there is more attention on environmental management systems and the assumption is that such a system is critical to a firm’s ability to reduce waste and pollution while simultaneously improving overall performance.

It also encourages a firm to design and implement its own environmental management system and achieve its own environmental goals. The results of the study in

Calantone, 2002)

strongly demonstrate that firms in possession of a formal EMS perceive impacts well beyond pollution abatement and see a critical positive impact on many dimensions of operations performance. A similar conclusion is reached by (IOSIFOV and RATNER, 2019) wherein it is shown that the application of ISO 14001 can result in a well-designed

environmental management strategy that covers the whole range of issues related to innovative development, modernization and competitiveness and this can be considered as a condition for the development of eco-innovation. The introduction of and efficient and effective EMS is also associated with an increase in the information transparency of the entire production system of the company, which also serves to be a positive point in terms of the development of innovative processes. The concept of life cycle perspective also finds way in the implementation of Environment Management Systems as well. According to (Joachimiak-Lechman, 2013)

ISO 14040 recommends the use of the Life Cycle Assessment technique in numerous areas of

environmental management such as in eco-design, eco-labelling, environmental communications and assessing the effects of environmental activities.

3.1.9 Meeting life cycle requirements in ISO 14001

According to ISO 14001, the organization shall determine the environmental aspects of its

activities, products and services that it can control and those that it can influence, along with

their associated environmental impacts, all the while giving precedence to a life cycle

perspective. Thus while designing methodologies for tackling and mitigating environmental

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aspects, extra consideration of the life cycle perspective will also have to be applied. The main stages in a life cycle are:

1. Design and development: In light of the new requirements, organizations must examine many things more carefully during this phases. For example, while sourcing of parts, they need to take into account if the products or components contain substances of very high concern. If so, they need to be managed to ensure that they are compliant with legislation.

Another example is if conflict requirements for minerals are met wherein companies should be aware of local legislation to ensure that they fully understand what the products consist of, and that they are not unduly harming the environment or supporting illegal regimes in foreign countries by sourcing materials without proper knowledge. Other areas to consider are the impacts of building the product, the recyclability of the product itself, and all other associated parts, such as packaging.

2. Manufacturing: Effectively managing aspects related to manufacturing will not only reduce environmental impacts, but can also save money. Streamlining manufacturing, reducing excess power consumption, and ensuring that the supply chain is consistently practicing diligent habits can have a massively beneficial environmental influence while simultaneously striving for ISO 14001 compliance.

3. Post-manufacturing: Manufacturers should take care to provide appropriate information with the product to let the consumer know that the packaging will be recycled, that too in the most power-efficient way possible. In the case of electronic products, manufacturers could also provide options to make your product possible to upgrade. This can effectively increase the lifecycle of a product and may also open up other business opportunities.

4. End of life: The product guides and websites can also offer information and

opportunities for the end user to understand the best way to recycle their products. This can be done locally, or may operate in the form of a “return for disposal” program, depending on factors such as location, type and weight of the product, and so forth. Ultimately the

organization has the responsibility to ensure that all reasonable steps have been taken to prevent the product from creating damage to the environment at the disposal stage 3.1.10 Life Cycle Assessment

Life cycle assessment is a methodology to account for the environmental impacts of a product or

service throughout its entire life cycle (Müller et al., 2020). The entire life cycle of a product is

considered to span from cradle-to-grave which is to say from raw material extraction through

production, packaging, use, end-of-life treatment and recycling to final disposal. Through each

stage, the product’s life cycle also interacts with the environment and consumes natural resources

while potentially emitting pollutants. Life cycle assessment is a quantitative method to describe

these interactions and their potential environmental impacts. Due to this holistic approach, LCA

avoids the shifting of problems between both environmental impact categories and the ongoing

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life cycle stages. LCA is essentially a product related approach and if a company aims to achieve sustainable development, this approach has to go hand in hand with organization related

environmental management tools as well (Finkbeiner et al., 1999). Therefore, LCA is a valuable tool in environmental management systems in the context of ISO 14001:2015 and finds use in various fields such as product or process design, decision making in industry and policy as well as marketing. The LCA methodology was standardized in the 1990s by the international

standardization organization (ISO) in ISO 14040 and 14044 and it still continues to be updated and extended regularly. According to (Rybaczewska-Błażejowska, 2017) the methodology of LCA is structured along a framework that is the subject of a worldwide consensus and it also forms the basis of a number of ISO 14000 standards. Based on the ISO standard, this framework basically divides the entire Life Cycle Assessment procedure into four distinct phases as shown in Figure 1.

The different phases in LCA are as follows:

1. Goal and Scope definition

The definition of the goal and scope is the first step in an LCA study. It involves a variety of operations executed in succession such as formulation of the goal,

identifying a product system and its functional unit, and finally specifying the system

Source: (Rybaczewska-Błażejowska, 2017)

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boundaries. The purpose of the study should be articulated in a straightforward manner, not only in terms of what to do, but also in terms of the reasons for the study's execution. The product system is a set of material, product and energy

connected unit processes which are fulfilled by one or more well specified functions.

The unit process is the smallest part of the product system which requires the collection of environmental data. The system boundaries are a set of criteria that specify the unit processes forming a part of the product system.

2. Life cycle inventory analysis

The second step of Life Cycle Inventory (LCI) analysis is concerned with the collection and quantification of inputs and outputs allocated to each unit process individually for a particular product system during its life cycle. Inputs cover two data categories, i.e. inputs from nature (resources) and inputs from the technosphere (materials, fuels, energy, and heat). Outputs include all pollution (air, water, and soil), waste, and non-material (radiation, noise) pollution. The LCA analysis may also rely on foreground data and/or background data, depending on the goal and scope.

3. Life cycle impact assessment

The third phase of LCA is life cycle impact assessment (LCIA) and it defines the relationship between the environmental inventory (environmental aspects) and the defined impact categories and category indicators (environmental impacts). LCIA's mandatory components are the selection of impact categories, category indicators and characterization models, classification (assignment of LCI results to impact

categories) and characterization (category indicator results calculation).

4. Interpretation

Life Cycle Interpretation constitutes the last step of an LCA study. This phase makes it possible to assess the findings in terms of their accuracy and completeness, and allows for examining the results obtained with regard to soundness and robustness, finally allowing for the formulation of conclusions and recommendations on reducing the environmental impacts

All these phases are interdependent and in practice, this interdependence renders LCA an iterative approach, as data availability is not always fully known at the beginning of an LCA study. Considering all these aspects, it can be expected that in the near future, LCA may become a common practice in ISO 14001 certified and EMAS registered organisations.

3.1.11 Adoption of ISO 14001:2015 by organizations

ISO 14001 is the most commonly used environmental management standard in the world, and

the second most commonly used industry standard used by organizations to monitor performance

in about 200 countries worldwide. A study by (Waxin, Knuteson and Bartholomew, 2019) relates

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some of the key factors of success after evaluating organizations that had implemented ISO 14001. The companies saw favourable outcomes with regard to environmental performance, organizational reputation, relationships with stakeholders, organizational efficiency,

environmental management practices, and environmental awareness and all of these were shared between private and public organizations. The Institute of Environmental Management and Assessment surveyed 487 of its members in 2017 and found that almost half (48.5%) of the respondents had implemented ISO 14001 in their organization and over 60% had more than five years of experience with ISO 14001 (Parsons, 2017).

A study by (Nishitani, 2010) using a sample of 155 countries over eight years found that the environmental preferences and pressures of customers in environmentally conscious markets are more likely to encourage domestic and foreign suppliers to adopt ISO 14001. These supplies have already adopted certification owing to their better economic performance and consequently require their domestic and foreign suppliers to do the same. This widespread adoption of ISO 14001 is also partly enabled due to the prevalence of another concept in environmental

management, that of Design for Environment (DFE). In the subsequent section, we hope to go into more detail on how DFE has proved to be effective in allowing organizations to adopt ISO 14001:2015.

3.2 DFE as an approach to better cope with ISO requirements

Public policy is becoming increasingly stringent with respect to the environmental impacts of modern products. To respond to this tightened scrutiny, product designers must innovate to lower the environmental footprints of their concepts. Design for Environment (DFE) also commonly referred to as Eco-design is a field of product design methodology that includes tools, methods

23%

11%

35%

16%

1%

11% 4%

We have implemented the requirements and been certified against the revised standard

We have implemented the requirements but they are yet to be independently audited

We have completed a gap analysis and are in the process of implementation

We havent started yet

We have decided not to the implement the new requirements

N/A At what stage of implementing the revised standard are you?

Figure 3: IEMA Survey Source: (Parsons, 2017).

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and principles to help designers reduce environmental impact. According to (Fitzgerald et al., 2007) Design for Environment is the systematic consideration of design performance with regard to environmental, health, and safety objectives over the full product and process life cycle. Like other concurrent engineering techniques, DFE seeks to address product life-cycle concerns early on in the design phase. It combines several design-related topics such as dis assembly, recovery, recycling, disposal, regulatory compliance, human health and safety impact, and hazardous material minimization and is quite similar to design for manufacturing (DFM), design for assembly (DFA), and design for production (DFP).

According to (Telenko, O'Rourke, Conner Seepersad and Webber, 2016), the most powerful and well-known tool within DFE is Life-Cycle Analysis (LCA). However LCA requires a fully specified design and this is available only at the end of the design process. Thus LCA qualifies only as a retrospective design tool which has no bearing at the beginning of the design process.

This is an important point, because the decisions during the earlier design stages are the ones that carry the greatest environmental impact. This is where DFE comes in and shows potential as a concurrent design tool.

By implementing DFE principles at earlier conceptual and embodiment design stages, it is possible to leverage more environmental improvements. Thus with the adoption of DFE,

companies can find it easier to adhere to environmental standards and ISO 14001. This is further

Figure 4: Product development stages illustrating LCA as retrospective tool and DFE as concurrent design tool Source: (Telenko, O'Rourke, Conner Seepersad and Webber, 2016)

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facilitated by the availability of methods that can convert an already existing process into one that uses DFE principles. The research conducted by (Rio, Riel and Brissaud, 2017) essentially focuses on this aspect by identifying the information model characteristics needed to change a conventional design process into a DFE process. Novel approaches such as these can serve to provide better methods for industries to tweak their information systems for greater

environmental optimization. (Santos‐Reyes and Lawlor‐Wright, 2001) also describes how to develop an organized process that addresses the problem of integrating environmental concerns into an early product design process that is also consistent with the ISO 14001 EMS. The paper attempts to provide a structured approach to DFE that addresses environmental concerns in a coherent way and that which also supports an environmental management system (EMS).

There are also instances where DFE has been implemented in conjunction with ISO 1400.

According to (Sun, Han, Ekwaro and Zhang, 2003), based on the ISO 14000 system, many companies have also built their environmental management systems and tried to integrate DFE into it in a beneficial way. Some prominent examples are:

 In AT&T, the ISO 14000 series of EMS and DFE complemented each other in a holistic

approach that improved environment management. AT&T noticed that both the concepts were based upon the premise of organized, systematic, and documented approaches that also embraced the disciplines of Total Quality Management. A policy was developed which was to integrate life cycle environmental quality into design, development, manufacturing, and sales activities globally. For the part of DFE AT&T also developed the Environmentally Responsible Product Matrix - a high level LCA type tool.

 Another company that also implemented these elements into the EMS was IBM. IBM

adapted some useful measures including the distribution of environmental responsibility throughout the organization, providing regular feedback to management and employees, and also considered many ways to broaden traditional roles so as to include

environmental responsibilities.

 Eco-Design synonymous with DFE is a part of the Philips' strategic approach to

incorporate beneficial environmental improvement into everyday business operations.

They merged Eco-Design and ISO 14001 into one overall continuous improvement activity and it realized a more effective all company/all department approach. Philips green TV is a good example of a product that came out of this approach.

This widespread appeal for ecodesign has also translated into its increased adoption and a

growing number of companies are starting to recognise their responsibility to the environment

while delivering their products, services and processes. But there is still a disparity in these

numbers when the sizes of these companies are taken into account. For the most part, larger

companies are more motivated to implement these practices than small and medium sized

enterprises (SMEs) because they receive more media attention and are more vulnerable to

criticism. Thus, for a long time, eco-design was used mainly by large organisations who have

greater access to significant financial, research and development, human and technical resources.

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Greater involvement of the SMEs in this regard however, would be extremely desirable as the sheer numbers involved would translate into substantial environmental benefits. But, many small businesses do not perceive their own environmental impacts as significant when set against those of larger companies.

There is however a shift in this way of thinking and initiatives have been launched aimed at motivating SMEs to use eco-design (Arana-Landin and Heras-Saizarbitoria, 2011). A study by (Van Hemel and Cramer, 2002) finds that customer demands, governmental legislation and industrial sector initiatives are some of the most important stimuli influencing their adoption of ecodesign. In recent years, there has been a significant upheaval in these factors, especially that of government legislation. Most prominent in this area is the development of a a statutory framework that was established concerning the environmental responsibility of manufacturing industries, which has been fostered at the European Union level by directives concerning a wide categories of products (Le Pochat, Bertoluci and Froelich, 2007).

The European commission has also taken measures to reduce pressures on the environment, enhance security of supply of raw materials, and increase competitiveness, innovation, growth and jobs by moving towards the concept of a circular economy (NEUBAUER et al., 2017). It plans to achieve this by developing a common methodology for calculating the environmental footprints of products and launching Green Public Procurement (GPP) policies through which public authorities can significantly contribute to the Circular Economy, by procuring more environmentally friendly products and energy, improving functional use and reuse, and encouraging high value recycling in line with the Waste Framework Directive hierarchy. A significant part of these efforts is the emphasis placed on eco-design or more specifically implementing Circular Economy aspects in future product requirements under the ecodesign directive.

The ecodesign directive provides consistent EU-wide rules for improving the environmental performance of products such as household appliances and sets out minimum mandatory requirements for the energy efficiencies of these products. In the context of increasing world wide demand for more efficient products to reduce energy and resource consumption, the Ecodesign directive and similar EU legislation on ecodesign has allowed it to be labelled as an effective tool for energy efficiency and has further popularised it at an unprecedented level. One of the other potentially very significant development with regard to popularising eco-design are the changes and the adoption of new approaches and methods to the construction of

environmental management systems as prescribed by ISO 14001:2015 (Leehane, 2013).

Some of the main changes include adopting a wider outlook on the organisation’s environmental

impact covering the entire supply chain and implementation of eco-design of products as a

normative element of the environmental management systems (Lewandowska and Matuszak-

Flejszman, 2014). The introduction of the proposed changes to ISO 14001:2015 are also

expected to increase interest in ecodesign tools including Life Cycle Assessment amongst the

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organisations who have implemented EMS while adopting to the new standards. Thus it is clear that Design For Environment and ISO 14001 go hand in hand when it comes to environmental management and many a time it is also apparent that one paradigm facilitates the implementation of the other as well.

3.3 Design for sustainability

Design for Sustainability in its broadest sense can be defined as a design practice, education and research prerogative that, in one way or another, contributes to sustainable development

(Vezzoli, Ceschin, Osanjo and K. M'Rithaa, 2018). The main aim of Design for Sustainability is to achieve the goal of sustainable development which is development that “meets the needs of the present without compromising the ability of future generations to meet their own needs” a definition first promulgated by the Brundtland Commission in 1987. Concepts like eco design and green product design were implemented in the 1990s as approaches to be pursued by businesses to reduce the environmental impacts associated with their manufacturing processes.

Design for Sustainability (D4S) is one such eco design methodology that has developed from generally cleaner production methods to concentrate on goods and integrate social, economic and environmental development elements. The Design for Sustainability (D4S) concept outlines methodologies for making sustainable improvements (social, economic and environmental) to products by applying elements of life cycle thinking and also builds on the work of eco design to include economic and social concerns, with its underlying methodology including both

incremental and radical innovation. The United Nations Environmental Programme, Technology Industry and Economics Division (UNEP), is a key player in this area and in collaboration with various institutions such as the Delft University of Technology in the Netherlands (TU Delft) also release publications and collaborate with each other on sustainability projects. Back in 1997, UNEP published the eco design manual back in 1997 which was one of the first of its kind and this helped to lay the foundation for the widespread adoption of ecodesign concepts by policy makers, programme officers, and project specialists (Carel Diehl et al., 2009). Design for Sustainability requires that the design process and products resulting from it should take into account not only environmental concerns but social and economic concerns as well. This line of thought gives rise to a set of commonly cited D4S criteria referred to as the three pillars of sustainability which are people, profit and planet. This essentially forms the basis for the concept known as the triple bottom line.

3.3.1 Triple bottom line

The triple bottom line theory is an accounting framework advanced by John Elkington that extends the conventional business motive of seeking profits to incorporate two more fields of performance i.e the company's social and environmental effects. (Elkington, 1998) says that businesses need to help society by trying to achieve the three interconnected social,

environmental and financial goals. Traditionally business leaders have more or less been

concerned only about their bottom lines or their financial status and the monetary gains that their

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companies create. Global events such as the 2008 financial crisis, the BP oil spill, and climate change have cast a spotlight on corporate ethics and corporate social responsibility and public scrutiny on how businesses conduct themselves is increasing. Thus there is an increased support and awareness for implementing sustainability in business practices (Murray and Boron, 2019) by companies and business leaders which prompts them to look beyond profits to include social and environmental issues as well. According to (Albertini, 2013)

orporate sustainability aims to expand the financial bottom line into a triple bottom line by including the environmental and social aspects of corporate performance into company policy. Companies have now started to realize that in order to stay relevant in changing markets, it is no longer enough to devote their focus on just the economics of their businesses alone. A study done by (Dixon-Fowler et al., 2012) finds conclusive empirical evidence that it “pays to be green.” According to the paper, the meta-analytic results of multiple studies indicate that there is a significant positive relationship between corporate environmental performance and corporate financial performance, consistent with prior research. (M Shank and Shockey, 2016) asserts that the business strategy of many companies is becoming increasingly dependent on how well a company positions itself in terms of sustainable development that balances the three main traits of financial, environmental, and human development. (Alshehhi, Nobanee and Khare, 2018) also finds that there is an

overwhelmingly positive relationship between corporate sustainability practices and corporate financial performance. Thus there is little room for doubt that sustainable development and Have ISO certified organizations acquired an awareness of the concept “Sustainable development”?

ISO 14001 works on the concept that better environmental performance is capable of being achieved when environmental aspects are systematically identified and managed in turn providing a major contribution to sustainability, through pollution prevention, improved environmental performance and complying with applicable laws. Thus it follows that ISO certified organizations would implicitly adhere to the tenets of sustainable development as it is a major consequence of the standard. The new ISO 14001:2015 essentially integrates

environmental management as a core business component into companies persuading them to engage in sustainability thinking and fostering a sense of environmental preservation. This fact is more easily understood just by looking at how many of the UN SDG goals overlap with those set by the ISO standard. The 2030 Agenda for Sustainable Development, adopted by all United Nations Member States in 2015, emphasizes a holistic approach to achieving sustainable development that includes 17 Sustainable Development Goals (SDGs) which are:

1. No Poverty 2. Zero Hunger

3. Good Health and Well-being 4. Quality Education

5. Gender Equality

6. Clean Water and Sanitation

7. Affordable and Clean Energy

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8. Decent Work and Economic Growth 9. Industry, Innovation and Infrastructure 10. Reduced Inequality

11. Sustainable Cities and Communities 12. Responsible Consumption and Production 13. Climate Action

14. Life Below Water 15. Life on Land

16. Peace and Justice Strong Institutions 17. Partnerships to achieve the Goal

Eight out the seventeen UN SDGs are directly related to the areas of focus in the ISO 14001 standard. These pertain to the goals related to providing clean water and sanitation, affordable and clean energy, decent work and economic growth, industry, innovation and infrastructure, responsible consumption and production, climate action, life below water and life on land (Zgavc, 2015). The UN SDGs also cover both the mitigation of environmental impacts and adaptation to changes in the environment which are all aspects covered by ISO 14001. A lot of academic works also converge upon the notion of ISO 14001:2015 facilitating sustainable development. (Ciravegna Martins da Fonseca, 2015) unambiguously points to the ISO 14001:2015 DIS (Draft International Standard) which aims at achieving a balance between environmental, social and economic subsystems within the global system signifying an approach towards sustainable development. (Kramer, 2009) also identifies ISO 14001 as a sustainability tool which could be used as a means to embrace corporate sustainability because of its

commitment to environmental thinking and inherent principles such as policy, planning, implementation, measurement and evaluation and review and improvement. (Abualfaraa, Salonitis, Al-Ashaab and Ala’raj, 2020) also points out that the release of environmental standards such as ISO 14001 in 1996 was an important turning point with regard to raising sustainability awareness in companies.

According to (Caiado et al., 2018), Lean and Green practices can be instrumental in enabling sustainable development and it can also be integrated into ISO 14001 further demonstrating the standard’s compatibility with sustainability. A study by (Bekkering and McCallum, 1999) also asserts that an environmental management system following the ISO 14001 standard is a worthwhile tool available to municipal governments to achieve the goals of sustainable development. A case study by (Fortuński, 2008) also provides arguments that the ISO 14001 standard can bring about sustainable development, in particular when the standard legal enforcement mechanisms are weak.

The authors of (Maletic, Podpečan and Maletic, 2015) also recognize that ISO 14001 can be an effective tool for pursuing sustainable development, but they also go on to suggest that

organisations should move a step beyond the standard’s environmental focus and adopt a more

multidimensional perspective by simultaneously addressing environmental, quality and social

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responsibility issues as well. Another case study presented in (Petros Sebhatu and Enquist, 2007) demonstrated that ISO 14001 is not only a system for environmental performance, but it can also be used as a driving force for sustainable development and value creation in a radical change process aimed at quality improvement. In practice it can be seen that there are many ISO

certified companies that have also adopted sustainable development initiatives into their business practices.

Some prominent examples of ISO 14001 certified companies that also give due importance to sustainable development are:

 IKEA

IKEA has invested in sustainability throughout its entire business operations, including their supply chain and how they source their products. IKEA also has more than 700,000 solar panels powering its stores, and in 2012, announced its goal to be powered 100% by renewable energy by 2020 and is now also aiming to be a net energy exporter this year.

 Unilever

Unilever has made sustainability part of its corporate identity and its Sustainable Living Plan sets targets for sourcing, supply chain and production on everything from energy and water use to treatment of suppliers and communities where they operate. Three quarters of Unilever’s nonhazardous waste do not go to landfills and also the share of its agricultural suppliers that use sustainable practices has tripled since 2010.

 Panasonic

Panasonic has ambitious energy goals, both in terms of efficiency and renewable, and it also focuses on making environmentally friendly products. They have also managed to incorporate sustainability into their day-to-day life and has taken measures to reduce their carbon footprint. They have also partnered with several companies to create a

demonstration of a sustainable smart town in Japan centered on sustainability.

 IBM

IBM was another early adopter of sustainability and eco-friendly business and corporate social responsibility and environmental stewardship has been part of the company’s mission since the 1960s. Its data centres have received awards from the European Commission for their long-time energy efficiency successes. IBM’s efforts also include smart buildings that reduce resource demand, green procurement, water resource management etc.

 Adobe

Adobe systems was the greenest IT company in Newsweek’s 2014 rankings and has

already made some impressive achievements, including obtaining LEED certification for

more than 70 per cent of its workspaces. It also has ambitious goals such as getting to net

zero energy consumption and reducing its packaging. Adobe was also a corporate leader

in reducing its water use to respond to California’s historic drought, even after it had

already reduced its water use by more than 60 per cent.

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Corporate sustainability strategies to achieve sustainable development

Companies can show that they can work with sustainable development by adopting effective corporate sustainability strategies. Corporate sustainability is an emerging philosophy of

management that aligns corporate benefit goals with environmental conservation, social justice, economic growth, and ethical governance. In the last decade, corporate sustainability activities have developed from being philanthropic in nature to being more aligned with corporate

imperatives and core business knowledge. Corporate sustainability begins with the value system of a company, and a business approach based on principles. This means operating in ways that meet basic obligations in the fields of human rights, labor, climate and anti-corruption at a minimum. Responsible businesses adopt the same standards and principles everywhere they operate, and recognize that good practices in one area do not offset harm in another.

The Global Compact of the United Nations is a non-binding United Nations pact that encourages global companies dedicated to responsible business practices in the fields of human rights, labor, environment and corruption. This UN-led initiative supports activities aimed at building a better environment to foster sustainable development goals by laying down ten principles that business must follow (UN Global Compact, 2000). By integrating these ten principles into strategies, policies and procedures and creating a culture of honesty, businesses not only uphold their fundamental obligations towards people and the world but also set the stage for long-term success. The ten principles as stipulated by the UN Global Compact are:

Human Rights

Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights

Principle 2: Make sure that they are not complicit in human rights abuses.

Labour

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining

Principle 4: The elimination of all forms of forced and compulsory labour Principle 5: The effective abolition of child labour

Principle 6: The elimination of discrimination in respect of employment and occupation.

Environment

Principle 7: Businesses should support a precautionary approach to environmental challenges.

Principle 8: Undertake initiatives to promote greater environmental responsibility

Principle 9: Encourage the development and diffusion of environmentally friendly technologies.

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Anti-Corruption

Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

There is no single path to adopt sustainability and every company represents a unique case that requires a comprehensive review of its strategy, operations and goals in order to advance sustainable practices. According to (Kashmanian, Wells and Keenan, 2011) an effective

corporate sustainability strategy is a multi-faceted strategy that is capable of providing multiple benefits to the company and it involves four key elements which are:

 Setting strategic direction

 Improving operational performance

 Improving value chain performance

 Relating effectively to internal and external stakeholders.

According to (Baumgartner and Ebner, 2010)

for a comprehensive corporate sustainability strategy, it is necessary to consider the three main pillars or dimensions of sustainability which are the economic, ecological and social dimensions and their impacts and interrelations. The inter dependence of these dimensions in the context of sustainable development along with other external influences affecting corporate orientation on sustainability are depicted in Figure. The grey columns reaching into the white area of the macro-level indicate the positive effects in the long term.

Organizations can also demonstrate their compliance to sustainable development by employing green or environmental marketing techniques which involve all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction

Figure 5: Corporate sustainability and its interdependences Source: (Baumgartner and Ebner, 2010)